VAT Increase for Short-Stay Rentals: What Changes in 2025?

From January 1, 2025, an important change in VAT legislation will come into effect, impacting landlords of short-stay accommodations. The VAT rate on short-stay rentals will increase from 9% to 21%. This change will be particularly noticeable for expats, tourists, and other temporary tenants who frequently use such housing.

What is short-stay rental?

Short-stay accommodations are properties rented for a shorter period, typically between several weeks and a few months. This includes expats working temporarily in the Netherlands or tourists staying for extended periods. Until now, this type of rental was subject to the reduced VAT rate of 9%, as it was considered a form of lodging, similar to hotel stays.

Why this change?

The government has decided to align short-stay rentals with regular commercial rental sectors, such as hotels. With this measure, the government aims to reduce unfair competition and better regulate the housing market. By increasing VAT to 21%, short-stay rentals become less financially attractive, which may help balance housing availability between long-term rentals and temporary tenants.

What does this mean for tenants and landlords?

For landlords, the change means a higher tax burden on their short-stay activities. As a result, landlords may choose to raise rental prices to compensate for this difference. Tenants of short-stay accommodations can therefore expect higher rental prices starting in 2025.

Prepare for the changes

It is important for landlords to prepare in advance and review their rental policies. Inform tenants in a timely manner about the upcoming VAT increase, and ensure that any contracts or rates are adjusted accordingly. At Verra Makelaars, we stay informed about these developments and are happy to support our clients with advice on the impact of these changes.

Would you like to know more about what this change means for you? Contact us for a free consultation!